- Ethereum faces resistance at $2,520, crucial for bullish momentum.
- Santiment highlights Ethereum’s +22.4% dominance over Bitcoin in one week.
Ethereum, the second-largest cryptocurrency, is at a crucial crossroads as it grapples with resistance levels and shifting market dynamics. Over the past week, ETH has experienced a 5% decline, currently trading at $2,462, with a 2.38% dip in the last 24 hours.
Ethereum’s recent struggles to surpass $2,550 and $2,580 mirror the BTC bears’ fight against negative market sentiment post-Bitcoin ETFs. The bears remain active as ETH trades below the $2,500 mark and the 100-hourly Simple Moving Average. Meanwhile, the trading volume is at $11 billion, reflecting a 14% daily increase.
Notably, Ethereum witnessed a bullish trend since the second week of January. Ethereum’s notable price surge from $2,170 to $2,714 during this period has distinguished it from the ongoing volatility of other altcoins. It is in a bearish trap amid Whale accumulation data from December 2023, suggesting a preference for Ethereum among ‘smart money’ investors.
Crucially, on-chain analytics firm Santiment highlights Ethereum’s dominance over Bitcoin, with a significant increase of +22.4% in just one week. The network is experiencing robust growth, averaging 89.4K new ETH addresses daily. Ethereum’s diminishing presence in exchange supplies further supports a positive outlook.
ETH Short-term Analysis
Analysts are closely watching key resistance levels, with the $2,520 threshold considered crucial for potential bullish momentum. A breach above this level could pave the way for a rally towards $2,580, followed by major hurdles at $2,620 and $2,680.
ETH Price Chart, Source: TradingView
On the downside, failure to clear $2,520 might trigger further declines, with initial support at $2,440 and a more significant level at $2,425. A breach of the latter could lead to a test of the $2,350 support, potentially marking a deeper correction.
